Please Help: Advance Tax
Posted Date : 06-Jul-2011 , 12:02:44 pm | Posted By: Ansuman
Category :
Accounts | Answers :
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Comments :
8| Hits: 2042
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Is advance Tax paid by company can booked as expense in books |
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Answers:
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 Answer by: Anjali Arora |
| NO, Advance Tax cant be booked as Expenses. it have to show separately in Current Assets.
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| Answer by: Ketan Samdani |
| Advance tax paid should be shown under current assets & not to be charged in P & L A/c.
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| Answer by: Vikash Kumar Jha |
| It is the item of Balance sheet in your financial statement
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| Comments |
| Posted By : CA Amit Jain |
24-Jul-2011, 09:09:07 |
| There are two process practically followed in the Industry.
1. Show the Advance Tax and TDS Receivable(If deducted by customer) under head loans and advances and make the provision for tax liability under head provisions.
2. You can also book the advance tax as a expense but in that case you are not required to make provision for Income Tax. In case there is difference between advance tax and provision for Income Tax due to TDS receivable you should separate maintain break up of advance tax, TDS receivable and provisions for income tax for each year. If you will not maintain than in this procedure you may feel the problem at the time of any assessment. |
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| Posted By : Saurabh Mittal |
08-Jul-2011, 05:20:28 |
| No advance tax is not a expense
Income Tax: not allowed as expense
Sales Tax: allowed as expense
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| Posted By : Ansuman |
07-Jul-2011, 02:00:54 |
| Thanks to all |
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| Posted By : CA VIPIN GARG |
07-Jul-2011, 10:26:18 |
| totally agree with Ms. Anita............. |
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| Posted By : Banwari Sharma |
06-Jul-2011, 03:09:34 |
| No,since on the time of adv.payment entry would be....
{1}- adv.tax a/c dr.
(under head current assets)
To bank a/c
from the above entry it is clear that no impact on P/L a/c.
& hence it have to show separately in Current Assets.
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